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Cheers Acquired 100% of Tapp's Shares for $150,000

Question 15

Multiple Choice

Cheers acquired 100% of Tapp's shares for $150,000.On the acquisition date,the fair value of the current assets and the net capital assets were $104,000 and $216,000 respectively.The fair value of the liabilities equalled their book value.What is the amount of goodwill created in this acquisition? A) $(24,000) B) $ 0 C) $18,000 D) $40,000
Cheers acquired 100% of Tapp's shares for $150,000.On the acquisition date,the fair value of the current assets and the net capital assets were $104,000 and $216,000 respectively.The fair value of the liabilities equalled their book value.What is the amount of goodwill created in this acquisition?


A) $(24,000)
B) $ 0
C) $18,000
D) $40,000

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